Rail Vikas Nigam (RVNL) Q4 15/16 earnings summary

Executive summary

• FY16 delivered record turnover of ₹4,541.30 crore, up 44.54% YoY; profit after tax rose 54.86% to ₹287.59 crore.

• Physical project completions reached 697.66 km, while 525.25 km of sections were commissioned and handed over for railway operations.

• Growth depended on assured Ministry of Railways funding and project assignments; FY17 execution targets increase materially.

Financial highlights

• Standalone revenue from operations was ₹4,541.30 crore vs ₹3,141.97 crore; total income was ₹4,690.26 crore vs ₹3,238.02 crore.

• Standalone PBT rose to ₹363.65 crore from ₹236.35 crore; PAT reached ₹287.59 crore vs ₹185.71 crore.

• Consolidated turnover was ₹4,735.52 crore vs ₹3,447.73 crore; consolidated PAT was ₹407.73 crore vs ₹322.69 crore.

• Ministry project turnover was ₹3,864.98 crore; SPV and other deposit-work expenditure rose to ₹661 crore from ₹325 crore.

Outlook and guidance

• FY17 MoU targets: 410 km of doubling/third line and 375 km of railway electrification, vs prior-year targets of 261 km and 210 km.

• Turnover growth depends on continued assured funding or authority to raise extra-budgetary resources, and regular assignment of new projects with an ~18-month development lead time.

• Timely delivery also depends on land acquisition, finalized plans, government clearances, law-and-order conditions, railway traffic blocks and contractor capacity.